Press General government records surplus of almost 37 billion euros in 2017

Press release No. 059 of 23 February 2018

WIESBADEN – Net lending of general government amounted to 36.6 billion euros in 2017 according to updated results of the Federal Statistical Office (Destatis). In absolute terms, this was the highest surplus achieved by general government since German reunification. When measured as a percentage of gross domestic product at current prices (3,263.4 billion euros), the surplus ratio of general government was +1.1%. These are data based on the definitions of the European System of Accounts (ESA) 2010; they are used to monitor the budget situation in the EU Member States. 

Net lending is calculated as the difference between revenue (1,474.6 billion euros) and expenditure (1,438.0 billion euros) of general government. Revenue was higher than expenditure at all levels of general government. The largest surplus in 2017 was achieved by state government (16.2 billion euros). In absolute terms, it improved its financial situation to a greater extent than any other government level. It was followed at some distance by social security funds, which showed a surplus of 10.5 billion euros at the end of 2017. Local government, too, continued the budget consolidation, achieving a surplus of 8.8 billion euros in 2017. Central government achieved net lending of 1.1 billion euros in 2017, which was markedly less than in the previous year. The comparatively small central government surplus is mainly due to the consequences of the Federal Constitutional Court ruling which established the unlawfulness of the nuclear fuel tax. The resulting repayments to energy companies totalled approximately 7.3 billion euros. 

Major factors on the revenue side were a large increase in income tax and property tax payments (+6.4%) and the good employment situation, leading to a considerable growth in social contributions (+4.6%). A decline was however recorded in government revenue from interest and dividends received (-6.3%), the main reason being a marked decrease in the Bundesbank profit. The expenditure side was largely characterised by growth in expenditure on compensation of employees (+4.2%) and in expenditure on social benefits other than social transfers in kind (+4.0%). Due to the continuing very low interest rates and lower debt, interest payments decreased again (–6.4%).